Filipino banking firm, ChinaBank has joined forces with Qatar National Bank (QNB) to facilitate direct transfer from Qatar to the Philippines using the RippleNet payment solution.
ChinaBank said the collaboration is aimed at providing improved financial services to Filipino that have been deployed to work overseas post-Covid 19. With Ripple’s On-Demand Liquidity (ODL), both banks can enable instant settlements using XRP, doing away with the need for conventional correspondent banking relationships and the costs and delays that go along with them.
ChinaBank discussed their #Ripple use with QNB for remittances from Qatar to the Philippines in their latest annual report.https://t.co/YvHrbewR7C pic.twitter.com/KjaXuHom94
— WrathofKahneman (@WKahneman) April 29, 2023
According to the announcement, customers can effortlessly open an OKS Account with no initial deposit by using the China Bank START app on their smartphone.
Interestingly, QNB serves as Ripple’s principal partner in the MENA region. In 2021, the bank announced a partnership with Ripple as part of its plan to swiftly improve cross-border payments and remittance services.
Ultimately, the collaboration between ChinaBank and QNB in utilizing Ripple’s ODL, emphasizes the rising popularity of blockchain-based solutions in the international remittance sector.
Ripple’s ODL Payment Solution
Ripple’s On-Demand Liquidity (ODL) payment solution uses digital assets, such as XRP, to enable real-time cross-border payments. It functions by first converting one currency into XRP, and then converting that XRP into the desired currency.
Through this method, the need for conventional correspondent banking relationships is removed, along with the costs and delays that go along with them. In comparison to standard cross-border payment methods, ODL is a quick, effective, and affordable option.
So far, Ripple’s ODL has been launched across several countries to improve payment transactions. In 2021, the payment platform expanded its services in Japan. At the time, Ripple said it hopes that the first implementation of ODL in Japan would help it accelerate the adoption of the popular tech.
Similarly, Ripple announced last year that it has expanded its ODL services to Europe, specifically to France and Sweden. According to the announcement, LemonWay, a payment service for online marketplaces based in France, will leverage RippleNet’s ODL to improve its payment process by using XRP. Additionally, Swedish money transfer provider Xbaht will use ODL to provide instant and low-cost retail remittances.
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